Commitments and Contingencies

6 Months Ended

Dec. 31, 2015

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES:

Commitments:

The Company has issued a promissory note ("Note") for $650,000, payable to the Borkwood Development Ltd, a previous shareholder of the Company ("Seller"), payable and amortized monthly and carrying a interest at 5% per year. The Company has the right to prepay the note at any time with a notice of 14 days. To secure the payment of principal and interest the Sellers will receive a perfect lien and security interest in the Shares in the company ANV until the note with accrued interest is paid in full., and, 2) In the case that the Note has not been repaid within 12 months from the day of closing the Sellers have the right to convert the debt to common stock of Advanced Oxygen Technologies, Inc. in an amount of non diluted shares calculated on the conversion Date, equal to the lesser of : a) Six hundred and Fifty thousand (650,000) or the Purchase Price minus the principal payments made by the buyer, which ever is greater, divided by the previous ten day closing price of AOXY as quoted on the national exchange, or b) Fifteen million shares, which ever is lesser. The Note has been extended until July 1, 2016 and interest waived through the period ending June 30, 2015. The balance on the note as of December 31, 2015 and June 30, 2015 was $127,029.

The Company's wholly owned subsidiary Anton Nielsen Vojens, ApS has a note payable with a bank. The original amount of the note was kr 750,000 Danish Krone (kr) ("Note A"). The note is secured by the revenues of the lease with Statoil, with a 7.00% interest rate and 5 years left on the term. The balance on the note as of December 31, 2015 and June 30, 2015 was $25,210 and $29,836 respectively and the yearly payments are fixed at kr 75,000. The value of the note reflect the currency adjustments. The table below summarizes the companies commitments going forward.

The Company's wholly owned subsidiary Anton Nielsen Vojens, ApS has a note payable with a bank ("Note B"). The original amount of Note B was kr 1,132,000 Danish Krone (kr). Note B is secured by the subsidiary's real estate, with a 2.00% interest rate and 10 years left on the term. The balance on the note as of December 31, 2015 and June 30, 2015 was $136,693 and $144,616 respectively.

The value of the note reflect the currency adjustments. The table below summarizes the companies commitments going forward.

Advanced Oxygen Technologies, Inc. Commitments and Contingencies for the year Ending June 30, 2015
Year	Bank Note "A" Amount in DKK		Bank Note "A" Amount converted to $US Dollars at currency exchange rate at June 30, 2015		Bank Note "B" Amount in DKK		Bank Note "B" Amount converted to $US Dollars at currency exchange rate at June 30, 2015		Borkwood Note Amount in $US Dollars		Total *
2016	DKK 75,000		$	11,213	DKK 149,797		$	22,397	$	127,029	$	160,639
2017	DKK 75,000		$	11,213	DKK 149,797		$	22,397			$	33,610
2019		-		-	DKK 149,797		$	22,397			$	33,610
2020		-		-	DKK 149,797		$	22,397			$	33,610
2021		-		-	DKK 149,797		$	22,397			$	33,610
2022		-		-	DKK 149,797		$	22,397			$	33,610
2023		-		-	DKK 149,797		$	22,397			$	33,610
2024		-		-	DKK 149,797		$	22,397			$	33,610
2025		-		-	DKK 149,797		$	22,397			$	33,610
-		-		-		-		-		-	$	429,519

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* The amounts stated in this table reflect the Company's commitments in the currencies that those commitments were made and the total column is an estimate of what the US dollar amount would be if the currency rates did not change going forward.